16 TAC §402.600
The Texas Lottery Commission (Commission) adopts amendments
to 16 TAC §402.600 relating to Bingo Reports with changes to the proposed
text as published in the February 3, 2006, issue of the
Texas Register
(31 TexReg 631).
The amendments include less restrictive language with regard to the payment
of prize fees or rental tax due, and add reporting requirements for certain
licensees. The only change from the proposed version of the rule amendment
is a correction to a legal citation in subsection (l) of the rule.
The Commission received only favorable comments during the comment period,
both in writing and in person at the public hearing held on February 8, 2006,
at the Commission Headquarters located at 611 E. 6th Street, Austin, Texas.
The amendments are adopted under Occupations Code, §2001.054
which authorizes the Commission to adopt rules to enforce and administer the
Bingo Enabling Act.
The amendments implement Occupations Code, Chapter 2001.
§402.600.Bingo Reports.
(a)
On or before the 15th of the month prior to the end of
the calendar quarter, the Commission will mail the "Texas Bingo Conductor's
Quarterly Reports", "Texas Lessor Quarterly Reports", and "Manufacturer/Distributor
Quarterly Reports and Supplements" to its licensees.
(b)
Quarterly reports and payments due to be submitted on a
date occurring on a Saturday, Sunday, or legal holiday will be due the next
business day. The report will be deemed filed when deposited with the United
States Postal Service or private mail service, postage or delivery charges
paid and the postmark or shipping date indicated on the envelope is the date
of filing.
(c)
Quarterly Report for information relating to the conduct
of bingo games.
(1)
An authorized organization holding an annual license, temporary
license, or a temporary authorization to conduct bingo must file on a form
prescribed by the Commission or in an electronic format prescribed by the
Commission a quarterly report for financial and statistical information relating
to the conduct of bingo games. The report must be filed with the Commission
on or before the 25th day of the month following the end of the calendar quarter
even if there were no games conducted during that quarter.
(2)
The report must be filed under oath attesting to the information
being true and correct. Each officer and director is responsible for knowing
the contents of the report. The person signing the report must promptly provide
a copy of the report to such officer and director upon his/her request.
(d)
Quarterly report for information relating to the lease
of bingo premises.
(1)
A commercial lessor holding a license to lease bingo premises
must file on a form prescribed by the Commission or in an electronic format
prescribed by the Commission a quarterly report stating the rental income
received. The report must be filed with the Commission on or before the 25th
day of the month following the end of the calendar quarter regardless of whether
income was received.
(2)
The report must be filed under oath attesting to the information
being true and correct. Each officer and director is responsible for knowing
the contents of the report. The person signing the report must promptly provide
a copy of the report to such officer and director upon his/her request.
(e)
Quarterly report for information relating to a manufacturer
or distributor license.
(1)
A manufacturer or distributor shall file a report on a
form prescribed by the Commission or in an electronic format prescribed by
the Commission, reflecting each sale or lease of bingo equipment, and to the
total sales of cards, sheets, pads and instant bingo to a person or organization
in this state or for use in this state.
(2)
The report shall be filed with regard to each calendar
quarter and is due on or before the last day of the month following the end
of the quarter. The report is due to the Commission regardless of whether
sales or lease of bingo equipment occurred during the quarter.
(3)
The report must be filed under oath attesting to the information
being true and correct.
(4)
The Commission will deny a renewal application or revoke
a license of a manufacturer or distributor where the licensee has failed to
timely file with the Commission the required reports three times within four
consecutive quarters.
(f)
A manufacturer or distributor shall use the eleven digit
taxpayer numbers on file with the Commission when submitting information relating
to the sale or lease of bingo equipment, sales of cards, sheets, pads and
instant bingo. If six or more taxpayer numbers are incorrect on the report,
the Commission will return the report to the manufacturer or distributor for
correction. If five or less taxpayer numbers are incorrect, the Commission
will notify the licensee in writing of the taxpayer numbers that were changed
and the correct numbers to be used in the future.
(g)
Quarterly report for information relating to a system service
provider license.
(1)
A system service provider shall file a report on a form
prescribed by the Commission or in an electronic format prescribed by the
Commission, reflecting each sale or lease of an automated bingo system to
a person or organization in this state or for use in this state.
(2)
The report shall be filed with regard to each calendar
quarter and is due on or before the last day of the month following the end
of the quarter. The report is due to the Commission regardless of whether
a sale or lease of an automated bingo system occurred during the quarter.
(3)
The report must be filed under oath attesting to the information
being true and correct.
(4)
The Commission will deny a renewal application or revoke
a license of a system service provider where the licensee has failed to timely
file with the Commission the required reports three times within four consecutive
quarters.
(h)
A system service provider shall use the eleven digit taxpayer
numbers on file with the Commission when submitting information relating to
the sale or lease of an automated bingo system. If six or more taxpayer numbers
are incorrect on the report, the Commission will return the report to the
system provider for correction. If five or less taxpayer numbers are incorrect,
the Commission will notify the licensee in writing of the taxpayer numbers
that were changed and the correct numbers to be used in the future.
(i)
Failure to receive forms. The failure of a licensee to
receive forms from the Commission does not relieve the licensee from the requirement
of filing reports and remitting prize fees or taxes as applicable on a timely
basis.
(j)
If a licensee fails to file a quarterly report as required
by Occupations Code, §2001.504, the Charitable Bingo Operations Division
will mail to the licensee a letter stating the quarterly report has not been
filed. The applicable penalty and/or interest is due on the amount of prize
fee or rental tax that was not filed timely. The licensee must file a report
with the Commission even if no games were conducted or no rental tax collected.
(k)
Incorrect calculation of "Texas Bingo Conductor's Quarterly
Report". If the total receipts and total expenses do not total correctly,
the Commission will mail the conductor a letter, with a copy of the adjusted
report, stating an adjustment has been made to the quarterly report. If the
adjusted quarterly report is correct, the licensee will maintain the copy
in its file and no further action is required. If the licensee does not agree
with the adjusted quarterly report, an amended quarterly report reflecting
the correct data must be submitted to the Commission by the licensee.
(l)
The Commission will deny a renewal application for a license
to conduct bingo or a license to lease bingo premises or revoke a license
to conduct bingo or a license to lease bingo premises if the licensee has
failed to pay timely the prize fee or rental tax due three times within four
consecutive quarters and a final jeopardy determination has been made by the
commission for three of the four consecutive quarters in accordance with Occupations
Code Sections 2001.510 and 2001.511.
(m)
Extensions.
(1)
Filing extension because of natural disaster.
(A)
The Director will grant to a licensee who has been identified
as a victim of a natural disaster an extension of not more than 90 days to
file a quarterly report or pay rental tax or prize fees provided the licensee
has filed a timely request for an extension. In determining the natural disaster
victims, the Commission shall recognize the counties that have been identified
by the Comptroller of Public Accounts.
(B)
The person owing the quarterly report, rental tax or prize
fees must file a written request for an extension at any time before the expiration
of five working days after the original due date in order to obtain an extension.
(C)
If an extension under this paragraph is granted, interest
on the unpaid rental tax or prize fee does not begin to accrue until the day
after the day on which the extension expires, and rental tax, prize fees,
and penalties are assessed and determined as though the last day of the extension
were the original due date.
(2)
Filing extension for reasons other than natural disaster.
(A)
The Director may grant an extension of not more than 30
days for the filing of a quarterly report. Before a request for extension
may be granted, a written request setting out the reasons or grounds for an
extension and 90% of the prize fees or rental tax estimated to be due must
be received by the Commission postmarked on or before the due date of the
quarterly report.
(B)
The granting of a request is within the discretion of the
Director and the licensee will be notified in five working days of the request
of the decision of the Director.
(C)
If the request is denied, there will be no penalty assessed
if the return is filed and remaining prize fee or rental tax is paid not later
than ten days from the date of the denial of the request of the extension.
(3)
A request postmarked after the due date for the filing
of a request will not be considered.
This agency hereby certifies that the adoption has been
reviewed by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed with the Office of
the Secretary of State on March 29, 2006.
TRD-200601894
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Effective date: April 18, 2006
Proposal publication date: February 3, 2006
For further information, please call: (512) 344-5113